Business Stakeholders As Level Cambridge

Stakeholder is...

• an owner of shares in a company.

• a person or group of people who have an interest in a company and can either affect or be affected by the business.

Shareholder is...

• a person or group of people who have an interest in a company and can either affect or be affected by the business.

• an owner of shares in a company.

Answer explanation

Remember the difference

Which stakeholder? They want to make a profit on the money they have invested in the business...

• Customers

• The government

• Owners/shareholders

• Managers

Which stakeholder? They want to buy quality goods from a business for a fair price.

• The government

• Suppliers

• Employees

• Customers

Which Stakeholder? Businesses pay them taxes.

• Local community

• The government

• Banks/lenders

• Shareholders/owners

Which stakeholder? They often want to receive a promotion or a pay rise.

• Owners

• Customers

• Employees

• Local community

 

Which stakeholder? They try to make sure that the business achieves all of its objectives.

• Local community

• Managers

• Shareholders

• Employees

The view that businesses and their managers have responsibilities to a wide range of groups, not just shareholders best describes...

• the shareholder concept

• the stakeholder concept

• What stakeholders are

What responsibilities do businesses have to their employees?

• Training opportunities

• Satisfy customers’ demands

• Keep adverse environmental effects to a minimum

• Reasonable prices

Answer explanation

Training opportunities would be an example of responsibility to employees.

Multi answer - benefits of being responsible towards customers

• Local councils more likely to give planning permission to expand the business

• Good publicity

• Consumer loyalty

• Businesses to receive valuable government contracts